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GDP growth in 2016-17 set to slow to 7.1%

GDP growth in 2016-17 set to slow to 7.1%

The growth of the country’s gross domestic product (GDP) is expected to slow to 7.1 per cent in 2016-17 from the 7.6 per cent seen in the previous year, according to first advance estimates released by Central Statistics Office.

The data used to arrive at this growth estimate for the entire year is mostly based on data between April and October 2016, according to Statistics Secretary TCA Anant. As such, these estimates do not take into account the effect on the economy of the demonetisation of high value currency notes announced by the government in November.

The gross value added (GVA) is estimated to grow 7 per cent in 2016-17 compared with a growth rate of 7.2 per cent in 2015-16.

The agriculture sector saw significant growth with its GVA estimated to grow 4.1 per cent in 2016-17 up from 1.2 per cent in the previous year.

Manufacturing, on the other hand, is expected to witness a slowdown, with CSO expected the sector’s GVA to grow 7.4 per cent in 2016-17 down from 9.3 per cent in 2015-16.

The numbers also show a huge jump in Government Final Consumption Expenditure, which is expected to grow 23.8 per cent in 2016-17 compared with 2.2 per cent in 2015-16.

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